ExxonMobil SWOT Analysis

Free SWOT Analysis Example on ExxonMobil

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Strengths

  • A long established name that has been in existence for over one hundred years. This gives the customers a sense of security when dealing with the organization.
  • The organization has diversified into many different areas of the energy industry and has many strong brands under its main umbrella group.
  • The organization in the past has been able to survive without much damage to its reputation even after the Exxon Valdez oil spill. This is partly due to a few reasons, the good corporate citizenship of the organization, the correct and appropriate crisis management and crisis communication management strategy.
  • The organization has been innovative in the past and continues to be very innovative currently too by spending a lot on research and development to come up with more efficient and effective ways to manage the energy resources and reduce the negative impact to the environment.
  • The organization has a global presence and thus has access to a wider customer base and a larger market than other energy companies.
  • The organization has a very strong presence in both India and China, the emerging markets that have been known to increase their energy demands exponentially thus the organization has been profiting from this at a higher rate than most other organizations.

Weaknesses

  • The organization has been accused of not doing enough to go green and conserve the environment, rather that it is polluting and destroying the environment.
  • There has been much negative publicity generated from the Exxon Valdez spill and also the human rights or rather the employee rights records of the organization has been under a cloud, which is a significant weakness of the organization.
  • Inappropriate handling of the environmental interest groups is a very big weakness of the organization and can be detrimental to it in the future.
  • Further the organization has been known for exorbitant profits in the last few years as energy prices were increasing, which gave it quite a lot of negative publicity that the organization did not handle very well and has cost it the good will of its consumers, who consider the organization to be becoming rich at the expense of the “poor consumer”.

Opportunities

  • The biggest opportunities that are available to the organization currently is the increased demand of energy by developing economies in the South Asian and South East Asian regions likes Malaysia, Indonesia, Korea and Vietnam.

Threats

  • The emerging economies of China and India that have been the biggest demanders of energy in the past few years are being hit by the recession in the developed economies and thus have reduced their rates of energy consumption that has caused the organization to loose out on projected levels of profit.
  • The increased attention to the conservation of the environment has resulted in the reduction of the use of energy and energy savings and in the future this will only increase thus reducing the profitability of the organization.

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